Asset finance services – the third most common source of funding for companies, according to the Finance & Leasing Association (FLA) – can be particularly useful for businesses looking to expand quickly and efficiently, providing a range of tax and cash flow benefits for those who decide upon this particular route.
It is used to obtain all sorts of different equipment related to your specific business, be it cars and aircraft fleets, or manufacturing plants and telephones for the office. Whatever your individual needs are, this type of funding could prove especially beneficial to your company.
Public transport is one sector that makes excellent use of asset finance, but smaller companies in industries like IT and agriculture also seek out this type of funding because it is often the best solution for developing a company.
The finance is widely available from approximately 600 brokers and 5,000 dealers in the UK, as well as from finance companies themselves. You will find you have the option to update or replace equipment once the lease period is over and you’ll be able to take full advantage of the fact that the loan can’t be recalled over the lifetime of the agreement, so you can enjoy a greater level of security.
Earlier this month, the FLA revealed that there has been new growth in asset finance this year, reaching its highest monthly figure in nearly six years in September, peaking at more than £2.5 billion. Equipment finance grew by 53 per cent, new car finance by 30 per cent and plant and machinery finance was up by 22 per cent in September compared with the month before.